Because the stock market is expected to remain under pressure on concerns over the Fed’s monetary policy tightening and the resurgence of COVID-19 cases, we think it could be wise to bet on mid-cap stocks because they typically offer better stability and upside potential than their small-cap or large-cap counterparts. As such, we think Mid-cap names AerCap (AER), Jabil (JBL), Olin (NYSE:OLN), AutoNation (NYSE:AN), and Penske Automotive (PAG), which each possesses solid fundamentals, could be ideal bets now. Read on.Factors such as the emergence of another infectious coronavirus variant, rising inflation, geopolitical tensions, supply chain constraints, and the Federal Reserve’s decision to taper its bond-buying soon are driving market volatility. The major benchmark indexes witnessed a sell-off last Friday, raising concerns about a potential market correction in the near term.
Against this backdrop, fundamentally sound mid-cap stocks could be ideal bets. Historically, mid-cap stocks have delivered better returns than large-cap stocks and remained more stable than small-cap stocks. With favorable policies encouraging domestic production, and with ongoing efforts to address supply chain issues acting as a support, mid-cap stocks should benefit this month and beyond.
Therefore, we think investors could consider betting on mid-cap stocks AerCap Holdings N.V. (AER), Jabil Inc. (JBL), Olin Corporation (OLN), AutoNation, Inc. (AN), and Penske Automotive Group, Inc. (NYSE:PAG) now. Their fundamental strength, latest developments, and expanding market reach should help them dodge the market fluctuations and outperform the benchmark indexes.